A Belfast-based finance business has come back into local ownership after securing £150m in funding.
There has now been a successful management buyout (MBO) at Upstream, an asset-based lending (ABL) company which had been owned by a US securitisation fund for three years.
The company said the new funding will allow it to grow its team in the coming year, and provide “new employment opportunities.”
Upstream, which was founded in June 2011, provides capital for small and medium sized businesses.
The company says it has experienced “rapid growth” since the Covid-19 pandemic, and following the MBO, will focus on “acquisition and product diversification across the UK and Ireland”.
It has agreed a £150m facility with the London-based asset management business Pollen Street Capital, which it says will “accelerate the ambitious and sustainable expansion of the business”.
Read more
Judith Totten, Upstream founder and chief executive, said: “This significant new partnership with Pollen Street Capital will give us the bandwidth and fire power to support more ambitious entrepreneurs, with a much broader service offering.
“This MBO brings the Upstream business back under the full control of the local team, positioning us for growth through acquisition and diversification into new markets and services across the working capital, structured ABL and receivables spectrum.
“We remain sector agnostic but now have the capital for larger structured finance deals and a full ABL suite of facilities, securing our place as the ‘go to’ for growth funding.
“Amid economic headwinds and with traditional lenders adopting a more cautious approach, our relationship with Pollen Street Capital could not come at a better time.
“Supported by Pollen Street, we look forward to growing our footprint – and our team – across the UK and Ireland to help our clients achieve economic excellence. Our clear strategy now is to drive for scale.
“Pollen Street Capital’s partnership ethos aligns with our goal to support ambitious and visionary business owners.”
Connor Marshall-Mckie, investment director at Pollen Street Capital, said: “We are excited to work with Judith and the Upstream team on this new facility. Upstream has delivered impressive growth and strong performance in their structured ABL product, a perfect fit for our senior asset-backed credit strategy.
“We look forward to working with the team further scaling the business across the UK and Ireland.”
Bill Hichens, Upstream operations director, said: “The timing of this announcement could not be better.
“The SME and mid-corporate funding landscape has changed dramatically, accelerated by global economic instability.
“Businesses now require multi-layered funding approaches to maximise growth potential.”
News Catch Up – Thursday 13 February